Trump threatens 5% tariff on Mexico over disputed water deliveries

Mexican imports already face additional tariffs on autos, auto parts, steel and aluminum that Trump imposed on national security grounds.

Trump previously threatened tariffs and sanctions in April over Mexico’s treaty obligations, arguing the Mexican government had delivered less than 30% of its required water over a five-year cycle ending in October.

Mexican President Claudia Sheinbaum said in April that her government had proposed a plan to the U.S. to address the water-sharing obligations.

“There have been three years of drought, and Mexico has been complying to the extent that water has been available,” Sheinbaum said. “I am confident that, as with other issues, an agreement will be reached.”

Sheinbaum has not responded to Trump’s latest ultimatum.

Related: Mexico may face more Trump tariffs over Texas water dispute

The 1944 Water Treaty obligates both countries to share water from the Colorado and Rio Grande rivers. Mexico is required to transfer an average of 350,000 acre-feet of water per year to the U.S., measured over a five-year cycle.

The disputed water is stored in the Amistad and Falcon reservoirs, international reservoirs along the U.S.–Mexico border in the Rio Grande Valley that are jointly managed by both countries.

Farmers in South Texas have seen steep declines in irrigation water, an ongoing problem worsened by drought in both Texas and Mexico, leading to disputes over whether Mexico is meeting its treaty commitments, Dante Galeazzi, president and CEO of the Texas International Produce Association, told FreightWaves.

Galeazzi said the shortages are so severe they are reshaping cropping decisions in the Rio Grande Valley.

“Growers in the Valley, they’re not able to plant what they want to, and they’re not able to plant when they want to,” Galeazzi told FreightWaves in an April interview. “They’ve got to change their crop mix, because you think about valuable commodities like celery, which requires five to six waterings on a very specific schedule. If you don’t have the water, you can’t plant celery. That’s the same issue across a lot of different commodities — broccoli, cauliflower, Brussels sprouts — your high-dollar fruits and vegetables require consistent water.”